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need help pkease? Miller Corp. enters into a contract with a...

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Accounting

need help pkease?
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Miller Corp. enters into a contract with a customer to build an apartment building for $1,079,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $153,000 to be paid if the building is ready for rental beginning August 1,2026 . The bonus is reduced by $51,000 each week that completion is delayed. Miller commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: (a) Determine the transaction price for the contract, assuming Miller is only able to estimate whether the building can be completed by August 1,2026, or not (Miller estimates that there is a 70% chance that the building will be completed by August 1, 2026). Transaction price (b) Determine the transaction price for the contract, assuming Miller has limited information with which to develop a reliable estimate of completion by the August 1,2026, deadline. Transaction price Attempts: 0 of 1 used

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